As a nonresident, you pay PA income tax on compensation for services performed in Pennsylvania. Your PA employer should report and withhold PA tax from your PA-taxable compensation.
Pennsylvania Department of Revenue - Instructions for Nonresidents and Part-Year Residents
In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state.
Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:
- With your return open, select My Info in the menu.
- On the Personal info summary screen, scroll down to Other State Income, and select Edit.
- At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
- Select Continue to return to your Personal info summary.
After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.
Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.
TurboTax FAQ: How do I file a nonresident state return?
Going forward, you can avoid having to file two state tax returns in the future by asking your former employer to only withhold taxes from your resident state of Ohio.
A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
For example, let's say you live in Ohio and work in Pennsylvania–two states with a reciprocal agreement. You can ask your employer to stop withholding Pennsylvania taxes. If your employer stops withholding Pennsylvania taxes, you would only have to file an Ohio return.
You can see which states have reciprocal agreements and, if you live in one of those states, the exemption form you can file. If you file an exemption form to not have withholding from that state, be sure to ask your employer to withhold taxes from your resident state. The link below has the exemption form that you need to send to your former employer.
Form REV-419 EMPLOYEE’S NONWITHHOLDING APPLICATION CERTIFICATE
@sockethead74
[Edited 2/07/24 | 9:07AM CST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
